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Nepal

After ten years of civil war between the government and Maoist rebels ended in 2006, Nepal is looking to shed its violent past and provide its citizens with political stability and economic growth. In the foreseeable future, economic growth will largely depend on the government’s ability to exploit the country’s hydroelectric power potential, which could provide electricity to energy hungry neighbors in the subcontinent, including India and Bangladesh. Additional natural resources consist of quartz, timber, copper, cobalt and iron ore. Increased agricultural production, which amounts to one-third of GDP and employs 75% of the work force, will also be a crucial element for any near-term economic growth. Nepal’s inchoate tourism industry also has potential to spur economic growth.

Nepal GDP Growth Rate (%)
Nepal GDP Growth Rate (%)
Source: Bloomberg
Nepal - NEPSE Index
Nepal - NEPSE Index
Source: Bloomberg

Stock Market:

The Nepal Stock Exchange Limited (NEPSE) was founded in 1993 and is located in Kathmandu. The history of securities market began with the floatation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the first issuance of Government Bond in 1964 and the establishment of Securities Exchange Center Ltd. in 1976 were other significant development relating to capital markets. Securities Exchange Center was established with an objective of facilitating and promoting the growth of capital markets. Before conversion into stock exchange it was the only capital markets institution undertaking the job of brokering, underwriting, managing public issue, market making for government bonds and other financial services. Nepal Government, under a program initiated to reform capital markets converted Securities Exchange Center into Nepal Stock Exchange in 1993.

There are 229 listed companies with a market capitalization of over USD 15.3 billion as of November 2016. NEPSE lists companies in several sectors including commercial banking, hotels, hydropower, insurance, finance and development banking. The trading week is from Sunday to Thursday.

Useful Links:

Nepal Stock Exchange website: www.nepalstock.com.np

Nepal Map.